How to deal with a pay rise that coincides with an employee's pregnancy or maternity leave
The HR & Compliance Centre "how to" section provides practical guidance for employers on recalculating employees' entitlement to maternity pay as a result of a pay rise.
Where an employee becomes entitled to a pay rise during the period between the start of the statutory maternity pay (SMP) calculation period and the end of her maternity leave, the employer is required to recalculate and backdate payment of SMP to account for the rise. This guide gives practical examples of how to recalculate SMP in these circumstances. It also looks at the effect of a pay rise on contractual maternity pay.
- How to deal with a pay rise that coincides with an employee's pregnancy or maternity leave Guidance for employers on how a pay rise affects entitlement to SMP.
Also
The HR & Compliance Centre policies and documents section provides a Letter informing an employee that her statutory maternity pay has been recalculated.
Line manager briefing on maternity rights that apply in specific situations This line manager briefing covers a number of situations, including pay rises during pregnancy and maternity leave.
The HR & Compliance Centre FAQs section answers employers' questions on calculating SMP, including:
- Where an annual pay rise coincides with an employee's maternity leave will this affect her maternity pay?
- How is statutory maternity pay calculated?
- What is included in an employee's "normal weekly earnings" for the purposes of calculating statutory maternity pay?
